Hosted systems provide a way for customers to benefit from the value of software without the burden of infrastructure setup, support, and monitoring. One of the biggest hurdles of hosting is the transfer and intake of data into a hosted environment. Customers typically perform many steps such as decryption of the data, decompression of the data, extraction of the data for use, and movement/registration to make the data accessible to the hosted tools for use by the customers.
Customers can opt to purchase dedicated network connectivity between their on-premises components/data centers and their cloud vendors, but for most situations this expense is cost prohibitive. Without a dedicated network connection, however, connectivity is unreliable and inconsistent compared to communication between hardware within a dedicated network.